We have news of a new, small pipeline project with the potential to carry more PA Marcellus natural gas to several locations in Delaware and Maryland. Eastern Shore Natural Gas Company (ESNG), a subsidiary company of Chesapeake Utilities Corporation, filed a request with the Federal Energy Regulatory Commission (FERC) in Sept. 2018 to build 19+ miles of new pipeline and new meter and delivery stations in Kent and Sussex counties in Delaware, and Wicomico and Somerset counties in Maryland. FERC has just issued a positive environmental assessment (EA) for the project.
ESNG, headquartered in Dover, DE, operates a network of natural gas pipelines in the Delmarva (Delaware-Maryland-Virginia) region. We’ve reported on a number of their previous projects (see our stories here).
We have to confess the Del-Mar Energy Pathway Project that ESNG filed last September escaped our notice–until today. We like to keep track of these projects because they flow more Marcellus gas from Pennsylvania to new markets. The Del-Mar Energy Pathway Project, by building small new pipeline segments in several locations, along with upgrading or building new meter and delivery stations, will flow an extra 14,300 dekatherms per day (14.3 million cubic feet per day, not all that much) of natural gas to new customers.
The project will cost roughly $37 million to build and the target in-service date is second or third quarter of next year.
Here’s the press release announcing FERC has issued a favorable EA:
Chesapeake Utilities Corporation (NYSE: CPK) announced today that the Federal Energy Regulatory Commission (FERC) has issued a positive environmental assessment of the Company’s Del-Mar Energy Pathway Project (Project) (Docket No. CP18-548-000). The Project, which was applied for in September of 2018 by Eastern Shore Natural Gas Company (ESNG), Chesapeake Utilities’ interstate natural gas transmission subsidiary, proposes the construction and operation of new natural gas pipeline and meter and delivery (M&R) stations in Kent and Sussex counties in Delaware, and Wicomico and Somerset counties in Maryland.
“We have continued to meet the growing market demand for natural gas in the region by expanding our transmission pipeline capacity in recent years,” said Jeff Tietbohl, Vice President of Eastern Shore Natural Gas Company. “This project will play a significant role in providing clean, reliable and cost-effective natural gas to underserved areas on the Delmarva Peninsula.”
The FERC staff concluded that the proposed Project, with appropriate mitigating measures, would not significantly impact the environment. The Project proposes to add approximately 12 miles of natural gas pipeline in Kent and Sussex counties and nearly seven miles of pipeline in Wicomico and Somerset counties. FERC certificate authorization is anticipated by the end of the second or third quarter of 2019 and construction of the Del-Mar Energy Pathway Project is expected to commence later this year.
The construction and operation of the new natural gas pipeline and related facilities will provide approximately 11.8 million cubic feet per day of additional natural gas firm transportation service and 2.5 million cubic feet of off-peak transportation service to Chesapeake Utilities’ natural gas distribution subsidiaries on the Delmarva Peninsula and one industrial customer.
The projected cost of the project is approximately $37 million. The anticipated annual gross margin for the Del-Mar Energy Pathway Project is $5.1 million. For more information on the project, visit https://bit.ly/2GNiBef.
About Chesapeake Utilities Corporation
Chesapeake Utilities Corporation is a diversified energy company engaged in natural gas transmission and distribution; electricity generation and distribution; propane gas distribution; and other businesses. Information about Chesapeake Utilities Corporation’s businesses is available at www.chpk.com or through the Company’s Investor Relations App.
About Eastern Shore Natural Gas Company
Eastern Shore Natural Gas Company, a subsidiary of Chesapeake Utilities Corporation, owns and operates a 486-mile interstate pipeline that transports natural gas from various points in Pennsylvania to customers in Delaware, Maryland and Pennsylvania. For more information, visit www.esng.com. (1)
Once FERC issues a favorable EA, it’s a foregone conclusion FERC will issue a positive go-ahead for the project.
We located the following information about the project from the ESNG website:
Kent and Sussex, Delaware
Wicomico and Somerset, Maryland
Anticipated 2nd & 3rd Quarters of 2020*
*Contingent upon the Federal Energy Regulatory Commission’s (“Commission”) issuing authorization of the project by August 2019.
On September 14, 2018, Eastern Shore, submitted a Natural Gas Act Section 7(c) Application for a Certificate of Public Convenience and Necessity the Federal Energy Regulatory Commission’s regulations, submitted an application for a certificate of public convenience and necessity requesting authorization to construct, own, operate and maintain the Del-Mar Energy Pathway Project.
The Project is necessary to deliver up to an aggregate of 14,300 dt/d dekatherms of additional natural gas transportation service to meet growing market demand for economical and reliable energy with fewer emissions and will, for the first time, bring natural gas service to Somerset County, Maryland, one of only three counties in the state whose end users do not currently have access to environmentally friendly and affordable natural gas. Eastern Shore has executed binding Precedent Agreements with four of its existing shippers for the additional capacity.
- 4.9 miles of 16” looping (Kent County, DE)
- 7.39 miles of 8” extension and new M&R (Sussex County, DE)
- 0.35 miles 10” extension and upgrade Millsboro pressure control station (Sussex County, DE)
- 6.83 miles of 10” extension; new M&R (Wicomico and Somerset County, MD)
- New Measurement and Regulating Stations (Sussex County, DE; Somerset County, MD) (2)
A map of where the bits of this project are located (click for larger version, the Del-Mar Energy Pathway Project bits are in green on the map)
(1) Chesapeake Utilities Corporation (May 6, 2019) – Eastern Shore Natural Gas Company Receives Positive Environmental Assessment from FERC for Del-Mar Energy Pathway Project
(2) Eastern Shore Natural Gas (undated, accessed May 7, 2019) – Del-Mar Energy Pathway Project
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